Examining the anatomy of last-mile distribution in e-commerce omnichannel retailing

Grocery omnichannel perishable inventories: performance measures and influencing factors

Purpose

Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures.

Design/methodology/approach

The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation.

Findings

Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects.

Practical implications

To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products.

Originality/value

This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors.

A Fuzzy Analytic Hierarchy Process Model to Evaluate Logistics Service Expectations and Delivery Methods in Last-Mile Delivery in Brazil

Nowadays, postal services and third-party logistics services (3PL) have been pressured by the increasing demand for delivery services. Therefore, they need to improve their last-mile delivery strategies to meet customers’ expectations. This paper aims to investigate how logistics service expectations affect the delivery process in urban areas using a multiple-criteria decision support system based on the Fuzzy Analytic Hierarchy Process (FAHP). We developed a decision-making model employing six criteria and five delivery methods indicated in the literature and collected information from 27 experts working in academia and local and multinational third-party logistics providers in Brazil to validate this model. The results indicate that cost (21.4%) and tracking and tracing (19.3%) are the most important two criteria in the decision model, and the best delivery methods are smart lockers (21.8%) followed by small trucks (21.3%). Our results suggest that service expectations regarding last-mile delivery are aligned with extensive use of road transport and the increase in e-commerce sales can raise greenhouse gas emissions and compromise the environment in urban areas.

Last mile delivery in logistics and supply chain management: a bibliometric analysis and future directions

Purpose

The main objective of this paper is to provide a systematic literature review (SLR) and structured insight into last mile delivery, ultimately identifying gaps in current knowledge and proposing a framework for future research direction in terms of sustainability in the area.

Design/methodology/approach

This paper identifies and synthesizes information from academic journals and examines “Journals and Publishing place,” “Geographic location,” “Year of Publication,” “University and Author Affiliation,” “Themes and Sub-themes,” “Theory,” “Research Design, Methods and Area” and “Industry Involvement.” A collection of online databases from 2005 to 2020 were explored, using the keywords “Last mile delivery,” “Last mile logistics,” “Last mile transportation,” “Last mile fulfillment,” “Last mile operations” and “Last mile distribution” in their title and/or abstract and/or keywords. Accordingly, a total of 281 journal articles were found in this discipline area, and data were derived from a succession of variables.

Findings

There has been significant growth in published articles concerning last mile delivery over the last 15 years (2005–2020). An in-depth review of the literature shows five dimensions of the last mile: last mile delivery, transportation, operations, distribution and logistics. Each of these dimensions is interrelated and possess clustered characteristics. For instance, last mile operations, last mile transportation and last mile delivery are operational, whereas last mile distribution is tactical, and last mile logistics possess strategic characteristics. The findings also indicate that even though the sustainability concept can be incorporated into all levels of the last mile, the current literature landscape mainly concentrates on the operational level.

Research limitations/implications

This review is limited to academic sources available from Emerald Insight, Science Direct, Taylor and Francis, Springer, MDPI and IEEE containing the mentioned keywords in the title and/or abstract/or keywords. Furthermore, only papers from high-quality, peer-reviewed journals were evaluated. Other sources such as books and conference papers were not included.

Practical implications

This study dissects last mile delivery to produce a framework that captures and presents its complex characteristics and its interconnectedness with various related components. By analyzing last mile delivery in its entirety, the framework also helps practitioners pinpoint which levels of last mile delivery (operation, tactical or strategic) they can incorporate the concept of sustainability.

Originality/value

The research findings enrich the contemporary literature landscape and future work by providing a conceptual framework that incorporates the “economic,” “environmental” and “social” pillars of sustainability in all dimensions of the last mile delivery.

Blockchain, logistics and omnichannel for last mile and performance

Purpose

This research investigates the effects that blockchain exerts on omnichannel solutions and logistics strategies with the aim of solving the last mile issues and improving performance.

Design/methodology/approach

Research hypotheses are developed according to the literature review and the related gaps. Then, the hypotheses are tested using structural equation modelling and adopting a partial least squares – path modelling technique on a dataset composed of 157 firms.

Findings

Blockchain technology alone is not an effective driver in solving last mile issues and improving performance. Rather, it exerts a positive contribution to both omnichannel and logistics. However, omnichannel is not effective in managing last mile problems and increasing performance without the support of other practices. Firms need to implement a strong logistics system to manage the last mile and get high performance, which can be then reinforced through blockchain and omnichannel solutions.

Originality/value

This research investigates the novel wave of research on blockchain and its impact on logistics management and omnichannel. It combines these ingredients to address the issues of last mile and improve the economic performance. The research provides an empirical verification of a new research stream that currently lacks empirical support.

Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework

E-commerce is always more diffused as a selling channel around the whole world market, and its importance has increased and continues to increase with the COVID-19 pandemic emergency. It provides enterprises a lot of opportunities, as the importance of physical stores to sell goods is bypassed. However, it has also changed the role of logistics in the supply chain. For this reason, this work aims to identify the main logistics research areas related to e-commerce implementation and the factors and key performance indicators, which should be taken into account for each logistics research area, with particular attention to sustainable aspects. For doing this, a structured and comprehensive literature analysis is carried out. Keywords associated with e-commerce and logistics areas are matched to identify the most interesting works related to its implementation. From the analysis, five main research areas are identified: Supply Chain Network Design (SCND); Outbound Logistics (OL); Reverse Logistics (RL); Warehousing (WR); and IT and data management (E-IT). For each area, key factors, strategies and performance indicators have been identified. Finally, a methodological framework that summarizes the results of the analysis is presented; this is a useful tool for managers to implement or expand their e-commerce business. Many works are focused on one research area, carrying out critical factors, models, and methods to implement that topic. Instead, the methodological framework presented here summarizes multiple research areas from a logistic point of view, identifying for each one input and output variables and how they influence each other.

Omni-channel integration: the matter of information and digital technology

Purpose

This paper aims to explore how omni-channel data flows should be integrated by specifying what data, omni-channel agents and information and digital technologies (IDTs) should be considered and connected.

Design/methodology/approach

A multiple case study method is used with 17 British companies. The studies are supported by 68 interviews with the case companies and their consumers, 5 site visits, 4 focus group meetings and the companies’ archival data and documentations.

Findings

This paper provides novel frameworks for omni-channel data flow integration from consumer and business perspectives. The frameworks consist of omni-channel agents, their data transactions and their supporting IDTs. Relatedly, this paper formalizes the omni-channel data flow integration in the forms of horizontal, vertical and total integrations and explores their contributions to the adaptability of omni-channel, as a complex adaptive system (CAS). It also discusses that how inter-organizational governance mechanisms can support data flow integration and their relevant IDT implementations.

Research limitations/implications

The breadth and depth of the required IDTs for omni-channel integration prove the necessity for omni-channel systems to move toward total integration. Therefore, supported by CAS and inter-organizational governance theories, this research indicates how data flow integration and IDT can transform the omni-channel through self-organization and autonomy capability enhancement.

Originality/value

This research’s recommended frameworks provide a robust platform to formalize data flow integration as the omni-channel's core driver. Accordingly, it moves the literature from a basic description of “what omni-channel is” and provides a novel and significant debate on what specific data should be shared at what levels between which agents of the omni-channel, and with what type of relationship governance mechanism, to assure omni-channel horizontal, vertical and total integrations.

A study on the influential factors of the last mile delivery projects during Covid-19 era

The Covid-19 has shifted the face of many markets including e-commerce and online business with many bottlenecks to be cleared. The last-mile delivery project has the greatest effect on all types of e-commerce companies because it has many consumer touchpoints as well as the Covid-19 pain points. Due to these interconnected issues, the delivery projects itself requires modern solutions. The purpose of this paper is to identify, analyse and categorize the major factors that affect the last mile delivery projects in e-commerce, food sector, retail sector and so on using total ınterpretive structural modelling approach during the Covid-19. Ten major factors are identified from literature review, and expert opinions are collected from multiple organizations that are involved in the last mile delivery projects. The results indicate that types of goods, achieving routing efficiency and meeting fulfilment timeline are the key factors for last mile delivery projects during the time of Covid-19. This study helps the managers to identify the key factors and to focus on these factors for the successful implementation of last mile delivery project.

Challenges, Opportunities, and Lessons Learned: Sustainability in Brazilian Omnichannel Retail

This paper reports the focus group results administered with top executives of the Brazilian retailers regarding their omnichannel strategies. This study aimed at analyzing the process of implementing omnichannel strategies and identifying contributions omnichannel has to sustainability. Using qualitative exploratory and a case study design to assess three large Brazilian retailers, we collected information concerning omnichannel implementation associated with processes, technologies, and organizational structure. This study was conducted with top executives in Brazil. Results suggest that the most viable solution, given a company’s investment capacity, is implementing an e-commerce platform that results in greater integration, profitability, and sustainability of the whole chain. A discussion on the benefits and outcomes related to the sustainable performance of such companies is also presented. This study answers calls for more research on the retail sector in Latin American countries.

Distributed manufacturing: a new form of localised production?

Purpose

The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous production.

Design/methodology/approach

Supply network (SN) configuration and infrastructural provisioning perspectives were used to examine the literature on established localised production models as well as DM. A multiple case study was then undertaken to describe and explore the DM model further. A maximum variation sampling procedure was used to select five exemplar cases.

Findings

Three main contributions emerge from this study. First, the research uniquely brings together two bodies of literature, namely SN configuration and infrastructure provisioning to explore the DM context. Second, the research applies these theoretical lenses to establish the distinctive nature of DM across seven dimensions of analysis. Third, emerging DM design rules are identified and compared with the more established models of localised production, drawing on both literature and DM case evidence.

Practical implications

This study provides a rich SN configuration and infrastructural provisioning view on DM leading to a set of design rules for DM adoption, thus supporting practitioners in their efforts to develop viable DM implementation plans.

Originality/value

The authors contribute to the intra- and inter-organisational requirements for the emerging DM context by providing new perspectives through the combined lenses of SN configuration and infrastructural provisioning approaches.

Framework of Last Mile Logistics Research: A Systematic Review of the Literature

Coincident with the rapid growth of omni-channel retailing, growing urbanization, changing consumer behavior, and increasing focus on sustainability, academic interest in the area of last mile logistics has significantly increased. The growth in academic publications has been tremendous, with three out of four articles appearing within the past five years. The influx of research spans multiple disciplines and various methodologies, underlining the complexity and fragmentation of last mile logistics research, which leads to a lack of unity in the understanding of the concept. We provide a systematic review and classification of the literature to provide a more coherent view of last mile logistics research. The review covers 155 peer-reviewed journal publications focusing on last mile logistics. Findings demonstrate that the literature embraces a diversity of aspects and facets that are classified into five themes: emerging trends and technologies, operational optimization, supply chain structures, performance measurement, and policy. Further, we propose a framework of last mile logistics literature that comprises five components and their interrelationships, namely, last mile logistics, last mile distribution, last mile fulfillment, last mile transport, and last mile delivery. The results provide a foundation for further development of this research area by proposing avenues for future research.